The Margaritaville Casino and Resort project in Biloxi, Mississippi has been on hold since 2008 and it now appears that construction will not get under way again anytime soon:

The construction cranes are about to be taken down at the site of the stagnant Margaritaville project on Biloxi’s Casino Row.

Harrah’s executive John Payne called WLOX News Wednesday to let us know that over the next few weeks, the cranes would be disassembled. However, Payne emphasized that his company still intends to find new partners and complete the Margaritaville expansion.

Payne said the idle cranes cost Harrah’s $10,000 a month. Since they’re not being used, the company determined it would be more cost effective to remove them from the east Biloxi property.

The developers have been looking for partners since at least November of last year.

Unveiled in 2007, the original plans called for a $700 million resort with 798 rooms, a full-service spa, a pool/deck area with cabanas, bar and tropical landscaping, all on 46 acres of land south of U. S. Highway 90.

A plan to turn the Trump Marina Casino in Atlantic City into a Margaritaville-themed casino and hotel fell through in June of last year.

Today is the deadline for Trump Entertainment Resorts Inc. and Coastal Marina, LLC to complete the sale of the Trump Marina and Casino in Atlantic City. Coastal Marina and Jimmy Buffett have plans to turn it into a Margaritaville Casino.

New York gaming group Coastal Marina LLC is facing a deadline today to complete the purchase of Trump Marina, the weakest performer in the bankrupt casino empire once controlled by Donald Trump.

Coastal Marina wants to team up with Jimmy Buffett to transform Trump Marina into a Margaritaville-themed casino inspired by the singer’s “Margaritaville” hit song from the 1970s.

Trump Entertainment, parent company of Trump Marina, plans to continue negotiations with Coastal today, but would not disclose Wednesday whether the sale deadline might be extended.

“The deadline has not expired yet, so we’re continuing to talk,” Trump spokesman Tom Hickey said.

The Trump Marina deal has been shadowed for months by speculation that Coastal was having trouble lining up financing in the tight credit markets. Trump Entertainment lowered the price last fall from $316 million to $270 million and extended the sale deadline from October to May 28 to help Coastal.

Read the full article here.

Update – The deal will not close this week:

A New York gaming group that is in talks to buy Trump Marina Hotel Casino says the deal will not close this week as scheduled but that it still wants to acquire the property.

Coastal Marina LLC is facing a deadline today to complete the $270 million purchase from Trump Entertainment Resorts Inc. Both sides say they continue to negotiate, but there was no word whether the sale deadline will be formally extended.

“I remain fully committed to our Margaritaville concept and very bullish on the long-term outlook for Atlantic City,” Coastal Chairman Richard T. Fields said in a statement.

An article in the Philadelphia Inquirer reports that the sale of the Trump Marina Casino to Coastal Development LLC is in jeopardy due to a lack of secured financing:

Three bankruptcy filings and Donald J. Trump’s resignation as board chairman of Trump Entertainment Resorts Inc. have thrown the casino company into turmoil.

Finalizing the sale of Trump Marina Casino Hotel looks more remote than ever – but not because of those reasons.

The interested buyer, Coastal Development L.L.C., of New York, has not secured the financing to close the deal May 26 – the targeted closing date, according to those familiar with the sale negotiations.

Analysts of the gaming industry predict the sale will not happen any time soon, because of tight credit and the declining financial performance of the property.

“Coastal Marina [an affiliate of Coastal Development] is closely monitoring news and events in Atlantic City and needs to fully evaluate the developing situation and its effects on Coastal Marina’s interests,” said Charlie Leonard, spokesman for Coastal Development.

Coastal said it planned to transform the Trump Marina into a Margaritaville-themed casino using entertainer Jimmy Buffett.

Read the entire article here.

Biloxipictures.com has an artist rendering of the Margaritaville Casino and Resort that is currently under construction in Biloxi, Mississippi:

The casino is expected to open in late 2010. Learn more about Buffett’s business empire here.

On Saturday afternoon, Jimmy Buffett and the Coral Reefer Band played an intimate show in front of 500-600 people at the Mohegan Sun Casino for the opening of the newest Margaritaville Cafe.

View the set list from the show here.

Did you attend the show? Post your comments on our forum.

Update – LiveDaily has a review of the show here.